Toyota makes UK factory cuts

Toyota is to cut production schedules and introduce a 10 per cent pay cut at its British factories.

The Japanese firm is reducing the working week by half a day at its factory in Derby, which makes the Avensis, and its engine plant in Deeside in Wales, in response to falling demand and the global recession. Staff have agreed to a base pay cut of 10 per cent as “the best way to secure long-term employment”, according to Toyota.

The new arrangement will start on 1 April and is scheduled to last for a year. Toyota claims that the deal has been arranged after “extensive consultation” with workers’ unions. All parties hope that the measures will enable Toyota to avoid the job cuts recently announced by Nissan and Mini.

In a statement, Toyota said, “We believe the measures we have announced give us a greater opportunity to maintain employment through this difficult period.”